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ByChristopher S. Rugaber The Associated Press WASHINGTON U.S. em- ployers added a robust 235,000 jobs in February and raised pay at a healthy pace, making it all but cer- tain that the Federal Re- serve will raise short-term interest rates next week. Friday's jobs report from the government made clear that the econ- omy remains on solid foot- ing nearly eight years after the Great Recession ended. The unemployment rate dipped to a low 4.7 percent from 4.8 percent, the La- bor Department said. More people began looking for jobs in February, a sign of confidence that raised the proportion of Americans working or seeking work to the highest level in nearly a year. The gains in hiring and pay, along with higher con- sumer and business confi- dence since the November election, could lift spend- ing and investment in com- ing months and accelerate economic growth. Ameri- cans are buying homes at a solid pace, and manufac- turing is rebounding, in part because of improving economies overseas. Investors responded initially by sending stock prices up sharply Friday. By late morning, though, stock indexes were up only slightly. The February jobs data likely provides the final piece of evidence the Fed needs to feel confident enough to raise rates next week for the third time in 15 months. The Fed's incli- nation to tighten borrow- ingratesreflectshowfarthe economyhascome sincethe central bank cut its bench- markshort-termratetozero in 2008 and kept it there for seven years to support a fragile economy. In December, Fed policy- makers forecast that they would raise rates a total of three times this year, which would lead eventu- ally to higher loan rates for homes and cars as the economy further solidifies its gains. Friday's figures make additional rate hikes this year more likely, econ- omists said. "Job growth continues to offer a positive reflec- tion on underlying eco- nomic conditions," said Russell Price, an econo- mist at Ameriprise Finan- cial. "There are few factors more important to consum- ers than jobs. Overall, con- sumers are in great shape to support an accelerated pace of economic growth." Average hourly pay rose 2.8 percent year over year in February, a decent gain though slightly be- low historical averages. In a healthy economy, wages typically rise at a roughly 3.5 percent annual pace. Last month's hiring was boosted by 58,000 addi- tional construction jobs, the most in nearly a de- cade. That figure was likely enhanced by unseasonably warm weather in much of the nation. Friday's report was the first to cover a full month under President Donald Trump. During the presi- dential campaign, Trump had cast doubt on the valid- ity of the government's jobs data, calling the unemploy- ment rate a "hoax." But just minutes after Friday's re- port was released at 8:30 a.m. Eastern time, Trump retweeted a news report touting the job growth. An array of evidence suggests that the U.S. job market is fundamentally healthy or nearly so. Hiring over the past two months has averaged 237,000, up from last year's monthly average of 187,000. The number of peo- ple seeking first-time un- employment benefits — a rough proxy for the pace of layoffs — reached a 44-year low two weeks ago. Business confidence has risen since the presiden- tial election, with many business executives say- ing they expect faster eco- nomic growth to result from Trump's promised tax cuts, deregulation and in- frastructure spending. The U.S. economy is also benefiting from steadier economies over- seas. Growth is picking up or stabilizing in most Euro- pean countries as well as in China and Japan. The 19-nation alliance that uses the euro currency expanded 1.7 percent in 2016, an improvement from years of recession and ane- mic growth. Germany's un- employment rate has fallen to 3.9 percent, although in crisis-stricken Greece, un- employment remains a painful 23 percent. In the United States, employers have been hir- ing solidly for so long that in some industries, they're being compelled to raise pay. Hourly wages for the typical worker rose 3.1 per- cent in 2016, according to a report this week by the Economic Policy Institute. That's much higher than the 0.3 percent average an- nual pay gain, adjusted for inflation, since 2007, the EPI said. Minimumwageincreases last year in 17 states and Washington, D.C., helped raise pay among the lowest- paidworkers,theEPIfound. Payincreasesforthepoorest 10 percent of workers were more than twice as high in states where the minimum wage rose as in states where it did not. At the start of 2017, min- imum wages rose again in 19 states, a trend that might have helped raise pay last month. U.S. builders are break- ing ground on more homes, and factory pro- duction has recovered from an 18-month slump, fueling growth and hir- ing. In February, manu- facturing expanded at the fastest pace in more than two years, according to a trade group. Businesses have stepped up their pur- chases of industrial equip- ment, steel and other met- als, and computers. And in January, Ameri- cans bought homes at the fastest pace in a decade despite higher mortgage rates. That demand has spurred a 10.5 percent in- crease in home construc- tion in the past 12 months. EMPLOYMENT US a dd ed 2 35 K jo bs i n Fe br ua ry , making Fed rate increase likely ELAINETHOMPSON—THEASSOCIATEDPRESSFILE The Space Needle towers in the background beyond a container ship anchored near downtown Seattle. GENE J. PUSKAR — THE ASSOCIATED PRESS FILE A Volkswagen is on display in Pittsburgh. By Tom Krisher and Ed White The Associated Press DETROIT Volkswagen pleaded guilty Friday to conspiracy and obstruc- tion of justice and agreed to pay a $4.3 billion pen- alty for a brazen scheme to program nearly 600,000 ve- hicles to cheat on U.S. emis- sions tests. The criminal and civil penalty, if approved by a federal judge, would be the largest ever levied by the U.S. government against an automaker. VW's total cost of the scandal now has been pegged at about $21 billion, including a pledge to repair or buy back vehicles. U.S.regulatorsconfronted VW about the software after West Virginia University re- searchers discovered differ- ences in testing and real- world emissions of harmful nitrogen oxide. Volkswagen at first denied the use of the so-calleddefeatdevicebutfi- nally admitted it in Septem- ber 2015. Even after that admis- sion, company employees were busy deleting com- puter files and other evi- dence, VW's general coun- sel Manfred Doess acknowl- edged to U.S. District Judge Sean Cox. Summing up the scan- dal, Assistant U.S. Attor- ney John Neal said it was a "calculated offense," not a "momentary lapse of judg- ment." The judge said he wanted more time to study the terms of the punishment negotiated by the U.S. Jus- tice Department, including a $2.8 billion criminal fine. He set a sentencing date of April 21. "This is a very, very seri- ous offense," Cox said. An attorney for 300 VW owners who have opted out of a larger court settle- ment objected to the pen- alty, contending that own- ers were entitled to restitu- tion through the criminal court. But the Justice De- partment and VW argued that the company agreed to pay $11 billion in resti- tution to owners through a civil lawsuit, and that was sufficient. That was part of a $15 billion civil settlement with U.S. environmental au- thorities and car owners ap- proved last year. Although the cost is stag- gering and would bankrupt many companies, VW has the money, with $33 billion in cash on hand. Under its agreement, VW must cooperate in the investigation and let an in- dependent monitor oversee compliance for three years. Separately, seven Volkswa- gen employees have been charged in the scandal. This story has been cor- rected to fix spelling of last name of Manfred Doess. Volkswagen pleads guilty, ag re es t o $4 .3 b ill io n fi ne EMISSIONS TESTS CHEATING | NEWS | REDBLUFFDAILYNEWS.COM SATURDAY, MARCH 11, 2017 6 B